Business Valuation Update
- Perception Grows of Bias in U.S. Valuation Experts
- Popular Real Estate DLOC Database Is Not Going Away
- Key Points From Hitchner’s Annual BV Update
- What to Glean From the IRS Hiring Binge for BV Experts
Ky. Adopts Majority Rule in Statutory Fair Value Determinations (Shawnee II)
Kentucky Supreme Court agrees with appellate court regarding the preclusion of minority and marketability discounts in statutory appraisals for dissenters’ actions, but finds that net asset value method is proper to consider along with “generally accepted ...
Ex Parte Communications Invalidate Arbitrator's Award
At issue is whether ex parte communication by an appraiser in determining a combined minority and marketability discount constituted "undue means" and therefore invalidated the use of the discounts in reaching the valuation conclusion.
New Tax Court Decision on Discounts and Embedded Taxes Hinges on Experts
Tax Court considers determination of discounts for embedded capital gains taxes, lack of control, and lack of marketability for estate’s interests in two closely held companies, one owning primarily farm land and the other marketable securities.
Close Call: Taxpayer Appeals FMV Standard and Discounts in Valuing FLP Restrictions
8th Circuit upholds Tax Court’s decision regarding application of IRC Sec. 2703 to FLP transfer restrictions and their limitation of marketability discounts under the fair market value standard.
Built-In Capital Gains Liability of Small Minority Interest Should Be Discounted to Reflect Time Value of Money
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value and the appropriate discounts for lack of marketability and control.
Major Victory for Taxpayer and Appraiser in Classic FLP Case
Taxpayer wins major, multimillion-dollar victory for appraisal of FLP assets in estate tax case, including court’s adoption of substantial discounts for lack of control and lack of marketability.
Having Lost the War on Family LLC, IRS Loses the Battle on the Discounts
Tax Court applies step transaction doctrine to formation and funding of family LLC, and then applies taxpayer’s discounts for lack of control and marketability, in absence of IRS evidence regarding the same.
Wife Gambles on Valuing Husband’s Minority Interest in Real Estate LLCs
Fair market value standard requires court to consider more than just the appraised values of real estate held by the husband’s minority interest in LLCs; it requires consideration of marketability and minority discounts, plus transfer restrictions.
Application of Minority, Marketability Discounts
In this corporate dissenter's rights action, Lindoe Inc. appealed the trial court's valuation of its stock in Pueblo Bancorporation, a bank holding company.
Marketability discount appropriate where no ready market exists
The issue in this marriage dissolution case is whether a marketability discount should be applied in determining the valuation of the common stock of the family business.
Indiana Considers Fair Value Standard in Divorce
Indiana appellate court considers adopting fair value standard in divorce.
Marketability Discount for 'Extraordinary Circumstances' Not Warranted
The primary issue before the New Jersey Supreme Court in this dissenters' appraisal rights case is whether a marketability discount should be applied in determining the fair value of the dissenters' shares of Lawson Mardon Wheaton Inc. (Wheaton).
Tax Court Considers QMDM and Restricted Stock Studies in Determining Discount for Lack of Marketability
In November 1992, the Petitioners gifted shares of St. Edward Management Co. (the "Company") common stock to their children.
Colorado Court Says No National Trend Toward Fair Value in Divorce
Appellate court permits valuation of professional’s earning capacity (goodwill) in appraisal of small law practice when there was no child or spousal support at issue.
Court Denies Lack of Marketability Discount in Fair Value Case
The issue in this minority oppression case concerning Chicago Metallic Corp. was the application of a marketability discount in determining fair value.
Tax Court Finds 12% Minority Discount and 23% DLOM for Cash-Only FLP
In April 1999, Webster Kelley and his daughter and son-in-law (the Loudens) formed Kelley-Louden Business Properties LLC (KLBP LLC), and Kelley-Louden Ltd., a family limited partnership (KLLP).
No Discounts in Rhode Island Fair Value Determination
One of the issues in the corporate dissolution action was whether the trial court erred in refusing to apply a minority discount and a discount for lack of marketability when it valued plaintiff's 20% interest in the defendant corporation.
Discount From NAV Issue in Liquidating Trust Value
The issue is the value of a 5% interest in a liquidating trust. The only dispute is the appropriate discount from NAV.
'Extraordinary Circumstances' Provide for 25% Marketability Discount
Twenty-six shareholders of Wheaton Inc. , a closely held family corporation, invoked their right to an appraisal and purchase of their shares pursuant to New Jersey statute.
5th Circuit Affirms Kerr; Partnership Agreement Restrictions Do Not Preclude Marketability Discount
This case is the 5th Circuit Court of Appeals' review of the Tax Court case, Kerr v. Commissioner, 113 T.C. No. 30 (U.S. Tax Ct. Dec. 23, 1999), abstracted by Mel Abraham in the February 2000 issue of both Shannon Pratt's Business Valuation Update and Judges & Lawyers Business Valuation Update.
Court compares husband to dissenting shareholder; uses fair value standard
A major issue in this trial was whether a marketability discount was appropriate. Facts The parties were married in 1982. Each party owned shares of Anchor Bancorp, Inc. , which was ...
Marital Court Denies Discounts Based on Shareholder Fair Value Standard
The issues raised in this marital dissolution case were (1) whether the trial court erred in valuing husband's interest in Union County Florist Supplies, Inc . (Florist), the family florist ...
Minority Share Gifts: Court Finds 30% Discount for Lack of Marketability
The parties stipulated to freely traded minority interest values, so the only issue was the discount for lack of marketability.
Can You Take it With You? State Supreme Court
Kansas Supreme Court revisits Family Limited Partnership discounts case, and offers "contours of guidance."
Marketability discount not appropriate where comparables were also closely held companies
One issue in this marital dissolution was the fair market value of Northwest Stamping, Inc. (NSI), a closely-held S corporation.